Russian steelmakers push to double minimum threshold for zero excise duty on steel

Domestic steelmakers have proposed doubling the minimum threshold for the zero excise duty on steel to 3 million tonnes, arguing that the current level of 1.5 million tonnes is insufficient to support the industry.

The proposal comes as the Russian government considers extending the zero excise duty on steel beyond its current expiration date of June 30, 2024. The duty was introduced in 2021 to support the steel industry during the COVID-19 pandemic and has since been credited with helping to stabilize the sector.

However, steelmakers argue that the current threshold is too low and is not providing enough support to the industry. They say that a higher threshold would allow them to increase production and investment, which would in turn benefit the economy as a whole.

The government is expected to make a decision on the proposal in the coming months. If approved, the higher threshold would be in place until at least 2026.

The proposal has been met with mixed reactions. Some industry experts believe that a higher threshold is necessary to support the steel industry, while others argue that it would be unfair to other sectors of the economy.

The government will need to carefully consider the pros and cons of the proposal before making a decision. The outcome of the deliberations will have a significant impact on the future of the Russian steel industry.